Embibe Transformed into Largest AI Edtech Platform with $180M from Reliance
Reliance to invest up to $180 million in Embibe over next three years; funds used for R&D, geographic expansion
Aditi Avasthi, Founder-CEO, Embibe, at BWDisrupt 40 Under 40
Reliance Industries Limited (RIL) has made definitive agreements to acquire majority shareholding constituting 72.69 percent on a fully diluted basis from existing investors of Individual Learning Private Limited (“Embibe”), a leading AI-based education platform leveraging data analytics to deliver personalized learning outcomes to each student. Reliance has agreed to invest the Rupee equivalent of up to $180 million in Embibe, including consideration to be paid for acquiring majority stake from existing investors, over the next three years. Embibe will use the capital over the next three years towards deepening its R&D on AI in education, as well as business growth and geographic expansion, catering to students across K-12, higher education, professional skilling, vernacular languages and all curriculum categories across India and internationally.
The founder and CEO of Embibe, Aditi Avasthi will continue in her leadership role and will drive the growth of the business. Speaking on this strategic transaction, Akash Ambani, director of Reliance Jio, said, “The investment in Embibe underlines Reliance’s commitment to growing the education sector in India and the world and making education accessible to the widest possible group of students by deploying technology. Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology. We are delighted to announce this partnership with Embibe, and believe that their highly experienced management team will be instrumental in enabling Reliance to realize its vision for the education sector, and strengthening Jio’s leadership position as a digital technology company.”
Over the last five years Embibe says it has impacted the lives of over 15 million students. Sixty leading educational institutions from the private and public sectors in India benefit from its newly launched AI driven education platform-as-a-service. Embibe counts Lightbox Ventures and Kalaari Capital amongst its investors.
Aditi Avasthi, founder and CEO at Embibe, said “Embibe’s team has built an incredible technology platform that can deliver personalized learning outcomes in a way that is truly scalable across all education markets. With robust AI stacks focused on content intelligence and automation, behavioral recommendations and student intelligence, our products have redefined the way edtech can impact the lives of students and teachers. We are supercharging our platform with the ability to deliver both content and outcomes for every learning goal in every student’s journey, to be the leader in personalizing education for India and the world. We are excited to partner with Jio – bringing unrivalled acceleration to our growth story through data and device access. Most of all, we are delighted to partner with Reliance and share their deep conviction and visionary passion to sow the seeds of a new India with data as the new soil.”
Citibank acted as financial advisor, AZB & Partners, Covington & Burling LLP and KPMG acted as legal advisors and Pricewaterhouse Coopers provided tax advisory and diligence services to RIL. Embibe was advised by Arpwood Capital, Shardul Amarchand Mangaldas & Partners, and Khaitan & Company as legal advisors and Deloitte Touché Tohmatsu Limited for tax advisory services.
Reliance Industries is India’s largest private sector company, with a consolidated turnover of $50.9 billion for the year ended 31 March, 2017. RIL whose activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services, will now foray into education services built on an AI platform.
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